SAN DIEGO, July 9 /PRNewswire-FirstCall/ -- CardioDynamics (Nasdaq: CDIC), the innovator and leader of BioZ(R) Impedance Cardiography (ICG) technology, today reported financial results for fiscal second quarter 2009. Highlights include 11% sequential revenue increase over Q1 2009 and 8% sensor growth compared with Q2 2008, the third consecutive quarter of year over year sensor growth.
Sales Highlights of Second Quarter 2009 Compared with Second Quarter 2008
Key Financial Results of Second Quarter 2009 Compared with Second Quarter 2008
Second Quarter 2009 Operating Results Discussion
The Company reported net sales of $5.7 million, a 9% decrease from second fiscal quarter 2008, but an 11% sequential increase over first fiscal quarter 2009. Year over year ICG sales decline was driven by 22% lower BioZ sales, partially offset by 8% growth in recurring sensor revenue. Sensor revenue grew 11% sequentially from first quarter 2009 to $1.9 million, recording the third consecutive quarter of sensor growth, averaging 10% growth over the three quarters. Gross margin as a percentage of sales decreased from 71% to 67% in the second quarter of 2009, largely due to a $3,000, or 10% decline in the average BioZ unit sales price in the direct domestic market resulting from a discount sales promotion offered during the second quarter. Operating expenses were essentially unchanged at $4.9 million compared with second quarter 2008. The second quarter of 2009 included approximately $250,000 of merger transaction-related expenses. Operating cash use was $340,000, an improvement of 31%, or $150,000, from $490,000 in the same quarter of 2008.
CEO Comments and Outlook
Michael K. Perry, Chief Executive Officer of CardioDynamics, stated, "We navigated through a tough quarter relatively well and were pleased with the third consecutive quarter of sensor revenue growth and 11% sequential revenue growth for the business. Economic conditions continue to put pressure on capital equipment spending in healthcare and this has affected demand for our BioZ systems. We are excited to join SonoSite, an industry leader in point of care medicine who shares our vision of creating non-invasive technologies that improve outcomes and reduce the cost of patient care. Being part of a larger company platform will provide additional resources that should enable accelerated growth for ICG technology in the years ahead."
Conference Call Information
Due to the merger with SonoSite which was announced on June 9, 2009, there will not be a quarterly financial conference call. The transaction is subject to shareholder approval and customary closing conditions and is anticipated to close during the third quarter of calendar 2009.
CardioDynamics (Nasdaq: CDIC), the ICG Company, is the innovator and leader of an important medical technology called impedance cardiography (ICG). The Company develops, manufactures and markets noninvasive ICG products and medical device electrodes. The Company's ICG Systems are being used by physicians around the world to help battle the number one killer of men and women--cardiovascular disease. Partners include GE Healthcare, Philips Medical Systems and Mindray. For additional information, please refer to the company's Web site at www.cdic.com.
Forward-Looking (Safe Harbor) Statement
Except for historical and factual information contained herein, this press release contains forward-looking statements, the accuracy of which is necessarily subject to uncertainties and risks including the Company's primary dependence on the BioZ product line, and various uncertainties characteristic of early stage companies, as well as other risks detailed in the Company's filings with the SEC, including its 2008 Form 10-K. The Company does not undertake to update the disclosures contained in this press release.
CardioDynamics International Corporation In thousands, except per share data (unaudited) Selected Consolidated Operational Results Three Months Ended Six Months Ended May 31, May 31, 2009 2008 2009 2008 Net sales $5,652 $6,180 $10,724 $11,942 Cost of sales 1,885 1,772 3,240 3,547 Gross margin 3,767 4,408 7,484 8,395 Research and development 370 370 765 684 Selling and marketing 3,725 3,721 7,295 7,443 General and administrative 816 761 1,589 1,532 Amortization of intangible assets 5 32 31 64 Loss from operations (1,149) (476) (2,196) (1,328) Other expense, net (277) (192) (502) (358) Loss before income taxes and minority interest (1,426) (668) (2,698) (1,686) Minority interest in income of subsidiary (19) (11) (68) (145) Income tax provision (41) (53) (180) (516) Income from discontinued operations - - - 127 Net loss $(1,486) $(732) $(2,946) $(2,220) Net loss per common share: Basic and diluted $(0.20) $(0.10) $(0.40) $(0.31) Weighted-average shares used in per share calculation: Basic and diluted 7,395 7,193 7,345 7,150
Selected Consolidated Balance Sheet Data May 31, November 30, 2009 2008 Cash and cash equivalents $4,187 $6,306 Accounts receivable, net 3,582 3,918 Inventory, net 1,352 1,490 Total current assets 9,445 12,138 Long-term assets 3,583 3,428 Total assets 13,028 15,566 Total current liabilities 3,912 4,499 Long-term liabilities 4,798 4,504 Total liabilities 8,710 9,003 Minority interest 510 472 Shareholders' equity 3,808 6,091
Copyright©2009 PR Newswire.
All rights reserved